BJ's Wholesale Club (BJ, Financial) just gave investors plenty to celebrate. Shares jumped 8.3% on Thursday after the retailer announced its first membership fee hike in seven years and unveiled a hefty $1 billion stock buyback plan. Starting January 1, standard memberships will rise from $55 to $60 annually, while the premium Club+ plan moves to $120, up from $110. CEO Bob Eddy framed the increases as a step toward strengthening BJ's value for its growing 7.5 million member base, especially loyal Club+ shoppers who benefit from gas rewards. With the buyback accounting for 8% of BJ's market cap, the move signals confidence in the company's growth—and gave the stock an extra kick toward record highs.
The financials were a mixed bag but leaned positive where it mattered. Third-quarter revenue climbed 3.5% year-over-year to $5.1 billion, narrowly missing Wall Street's $5.12 billion target, while comparable-club sales excluding fuel rose 3.8%, smashing analyst estimates of 2%. Adjusted EPS, however, was the real standout, coming in at $1.18—a jaw-dropping 29.7% beat over expectations. With full-year earnings guidance now nudged up to $3.90–$4.00 per share and comparable sales growth projected at 2.3%–2.4%, BJ's is doubling down on fresh foods to drive grocery sales, appealing to consumers tightening their wallets on big-ticket items.
BJ's stock has been on fire in 2024, up 30% year-to-date and outpacing the S&P 500 by a mile. Analysts are staying bullish, with a consensus “Buy” rating and whispers of upward price target revisions on the back of these solid results. The combination of a strategic membership fee hike, a massive buyback, and better-than-expected EPS performance solidifies BJ's as a retail powerhouse—and one that investors will be watching closely heading into 2025.
